Due to intense competition in the market in the recent years, a high-tech foreign-funded enterprises made a decisive response, the marketing strategy from targeting the original large foreign client base to be transfer to smaller-scale private enterprise customer base.
As the adjustment of the market positioning, they have made corresponding reorganization among staffs and changes the company's remuneration package. The new cost structure estimates significantly reduce the percentage of front-line staff’s sales commission. Redistribution of work leads to employee’s demoralize and also caused problems in the contradiction between gains and losses. Staff morale has shown a significant decline.
During the initial contact, the corporate personnel department requested us to provide similar training courses for team integration. During the assessment conversation, the HR director despite provides important information, also reflects the company is in a critical hidden crisis situation. Ultimately, we choose to start research and diagnosis the problem prior to consider training.
Our research assessment process found that half of the 140 middle and senior managers in the company were shock with the strategy changes. They are unclear of the company vision and do not know whether the new policy really able to bring more revenue. But one thing for sure after the reorganization, the frontline managers’ revenues have declined 40%. We are in critical demoralize situation, involuntarily, some of them even feel that they are the victims of this change. For those subordinates and team who worked hard all these while demonstrated morale depression, they really did not know how to effectively motivate their team. At the same time, competitors are in proactive action to commence excavation of their team talents...
After we and the HR team did the preliminary projection, the project (ROI) return on investment is estimated that within the next six months, the brain
drain is likely to be from the original 20% to 50%. In addition , other losses include : Senior Executive recruitment and head-hunting fees, advertising fees, a series of training fees, direct supervisor Executive rookie running-in process with a time delay, the transition period in place new salary, because staff changes caused by the operation of the slow and opportunity costs , the brain drain to the losses caused by competitors and competitive impact . This sum is not only contributed to the loss of nearly ten million yuan, but also delayed the headquarters of the goals and business continue to grow. This is causing high attention by the company's senior leadership team.
Organizations in assisting the transformation of the Board, we start our quickly discuss . At that time, we in this committee plays an advisory role. Through a series of proposals and discussions, the Transformation Committee accepted from four angles proceed to complete the transformation of the enterprise:
(1) expansion plan and measures changes in the integrity of concrete plan more carefully and the process of change
(2) to enhance the ability of managers to implement change, including how to stand on a higher perspective and anticipate change, how to expand the appropriate subordinates, superiors and cross-sectorial communication in the change process, how to deal with the impedance of employees, how to motivate the team and an effective and creative solutions change process problems that may occur.
(3) enhance the managers’ job coaching skills practice. This will not only make it easy for managers working in practice to enhance the ability of subordinates accordingly reduce the outsourcing of training funds and time, but also so that the leaders and subordinates will establish a closer relationship of trust.
(4) regularly measure the progress of each team taking supervision, reflection and celebration. This series of measures quickly reversed the team's morale, standardized and systematic follow-up to the company's transformation to become more at ease.
It’s a blink of an eye before we realized 9 months has passed. This project finally help the company successfully completed their goals, staff turnover also reached a new low. Upon completion of the transfer of the day, in which the managing director hold my hand and said, "This time of change is a turning point in my life, not only I realized a lot of things, but also left a deep meaning, thank you! "